🏢 About OTCM PROTOCOL COMPANY
✅ SEC CATEGORY 1 COMPLIANT | Issuer-Sponsored Tokenized Securities pursuant to SEC Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets Joint Statement dated January 28, 2026
🏛️ COMPANY OVERVIEW
Q: What exactly is OTCM Protocol?
A: OTCM Protocol, Inc. is a Wyoming Digital Asset Corporation operating SEC Category 1 compliant tokenized securities infrastructure:
// Company overview
interface OTCMProtocol {
// Corporate Information 🏛️
corporate: {
legalName: "OTCM Protocol, Inc.",
formerName: "OTC Meme Corp.",
entityType: "Wyoming Digital Asset Corporation",
jurisdiction: "Wyoming, United States",
formation: "2024"
};
// Core Business 🎯
business: {
focus: "SEC Category 1 compliant tokenized securities infrastructure",
technology: "Solana-based Layer 2 with SPL Token-2022 Transfer Hooks",
custody: "Empire Stock Transfer (SEC-registered transfer agent)",
compliance: "Full securities law compliance under Regulation D 506(c)"
};
// What We Provide 🛠️
services: [
"SEC Category 1 compliant tokenization infrastructure",
"CEDEX (Compliant Exchange for Digital Securities)",
"42 Transfer Hook security controls",
"Qualified custody coordination with Empire Stock Transfer",
"KYC/AML/accredited investor verification",
"Real-time custody oracle verification"
];
// What We Are 📜
registrations: [
"Wyoming Digital Asset Corporation",
"Regulation D 506(c) exempt offerings"
];
// What We Are NOT 🚫
notRegisteredAs: [
"Securities exchange (not registered with SEC)",
"Broker-dealer (not FINRA member)",
"Investment advisor (not SEC/state registered)",
"Transfer agent (Empire Stock Transfer provides this)",
"Bank or money transmitter"
];
}
| Component |
Description |
Function |
| 🏛️ OTCM Protocol |
Core infrastructure |
Smart contracts, Transfer Hooks, compliance systems |
| 💱 CEDEX |
Trading venue |
Compliant Exchange for Digital Securities |
| 🔐 Transfer Hooks |
Security layer |
42 mathematically-enforced compliance controls |
| 🏦 Empire Stock Transfer |
Qualified custodian |
SEC-registered transfer agent (independent) |
| 📊 Oracle System |
Verification |
Real-time custody and compliance verification |
Q: Where is OTCM Protocol located?
A:
🏢 Corporate Headquarters
OTCM Protocol, Inc.
(Wyoming Digital Asset Corporation)
Registered Agent:
Wyoming Registered Agent LLC
1712 Pioneer Ave, Suite 500
Cheyenne, WY 82001
General Inquiries: info@otcm.io
Issuer Relations: issuers@otcm.io
Compliance: compliance@otcm.io
Legal: legal@otcm.io
🌐 Online Presence
| Platform |
URL |
| 🌐 Main Website |
https://otcm.io |
| 📄 Documentation |
https://docs.otcm.io |
| 💱 CEDEX Platform |
https://cedex.otcm.io |
| 🐦 Twitter/X |
@OTCMProtocol |
| 💬 Discord |
discord.gg/otcmprotocol |
Q: Why did the company change from OTC Meme Corp. to OTCM Protocol, Inc.?
A: The rebranding reflects our evolution from a meme token platform to SEC Category 1 compliant tokenized securities infrastructure:
| Factor |
Before (OTC Meme Corp.) |
After (OTCM Protocol, Inc.) |
| 🏛️ Entity Type |
Florida Corporation |
Wyoming Digital Asset Corporation |
| ⚖️ Regulatory Framework |
"Howey Shield" (avoidance) |
SEC Category 1 (compliance) |
| 🎯 Focus |
Meme tokens |
Tokenized securities |
| 📜 Token Classification |
Attempted non-security |
Acknowledged securities |
| 🏦 Market Position |
Retail speculation |
Institutional-grade infrastructure |
Why Wyoming?
| Benefit |
Description |
| 📜 Digital Asset Laws |
Wyoming has most comprehensive digital asset legislation |
| 🏛️ DAO Recognition |
Wyoming legally recognizes DAOs |
| 💼 Business-Friendly |
No state income tax, strong privacy protections |
| ⚖️ Regulatory Clarity |
Clear framework for digital asset companies |
💰 BUSINESS MODEL & REVENUE
Q: How does OTCM Protocol make money?
A: Revenue from transaction fees on ST22 Tokenized Securities trading:
Fee Structure
| Trading Phase |
Total Fee |
OTCM Protocol |
Issuer |
| 🌱 Bonding Curve |
5.0% |
4.0% |
1.0% |
| 🎓 Post-Graduation (CEDEX) |
5.0% |
4.0% |
1.0% |
Revenue Sources
| Source |
Description |
| 💱 Trading Fees |
4% of every ST22 transaction |
| 🪙 Minting Fees |
$1,000 - $25,000 per tokenization (tiered) |
| 🏦 OTCM Utility Token Staking |
Protocol fees fund staking rewards |
Fee Distribution
┌─────────────────────────────────────────────────────────────┐
│ FEE DISTRIBUTION │
├─────────────────────────────────────────────────────────────┤
│ │
│ Transaction: $10,000 ST22 Trade │
│ │
│ Total Fee: 5.0% = $500 │
│ │
│ ┌─────────────────────────────────────────────────────┐ │
│ │ OTCM Protocol Treasury: 4.0% = $400 │ │
│ │ ├── Protocol Operations: 40% = $160 │ │
│ │ ├── OTCM Staking Rewards: 30% = $120 │ │
│ │ ├── Development Fund: 20% = $80 │ │
│ │ └── Insurance Reserve: 10% = $40 │ │
│ └─────────────────────────────────────────────────────┘ │
│ │
│ ┌─────────────────────────────────────────────────────┐ │
│ │ Issuer Revenue: 1.0% = $100 │ │
│ │ └── Paid directly to issuer wallet │ │
│ └─────────────────────────────────────────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────┘
What We Don't Charge
Q: What's the OTCM Utility Token?
A: OTCM is our platform utility token — completely separate from ST22 Tokenized Securities:
// OTCM Utility Token features
pub struct OTCMUtilityToken {
// Token Classification ⚖️
pub classification: TokenClassification {
token_type: "Utility Token",
is_security: false, // NOT a security
asset_backing: None, // NO asset backing
regulatory_status: "Utility token, not covered by Category 1"
},
// Governance Features 🗳️
pub governance: GovernanceRights {
voting: "Protocol parameter changes",
proposals: "Submit improvement proposals",
dao_participation: "Community governance",
weight: "Voting power proportional to staked OTCM"
},
// Economic Benefits 💰
pub economics: EconomicBenefits {
fee_discounts: "10-50% trading fee discounts based on stake tier",
staking_rewards: "8-40% APY from protocol fee revenue",
priority_access: "Early access to new ST22 launches",
enhanced_limits: "Higher transaction limits for stakers"
},
// Platform Access 🔓
pub access: PlatformAccess {
premium_features: "Advanced trading tools",
api_access: "Developer API access",
analytics: "Professional-grade market analytics",
support: "Priority customer support"
}
}
OTCM vs. ST22: Critical Distinction
| Factor |
OTCM Utility Token |
ST22 Tokenized Securities |
| ⚖️ Classification |
Utility Token |
Securities |
| 💎 Asset Backing |
None |
1:1 Preferred Series "M" shares |
| 🏦 Custody |
User wallets |
Empire Stock Transfer |
| 🎖️ Investor Restrictions |
None |
Accredited investors only |
| 📜 Regulatory Framework |
Utility token analysis |
SEC Category 1 |
| 🔧 Primary Function |
Governance, fees, staking |
Equity ownership |
⚠️ Critical: The OTCM Utility Token is NOT a security and has NO asset backing. It should not be confused with ST22 Tokenized Securities.
Q: How is OTCM Protocol different from pump.fun or other platforms?
A: Fundamental differences in regulatory approach, asset backing, and target market:
Comparison Table
| Feature |
pump.fun |
Other Meme Platforms |
OTCM Protocol |
| ⚖️ Regulatory Status |
Unregulated |
Varies |
SEC Category 1 Compliant |
| 💎 Asset Backing |
None |
None |
1:1 Real Preferred Shares |
| 🏦 Custody |
None |
None |
SEC-Registered Transfer Agent |
| 📜 Token Classification |
Meme coins |
Meme coins |
Securities (acknowledged) |
| 🔒 Share Permanence |
N/A |
N/A |
Irrevocable custody deposit |
| 🏢 Issuer Participation |
Optional |
Optional |
Required (40%+ commitment) |
| 🎯 Focus |
Pure speculation |
General memes |
Illiquid securities liquidity |
| 🛡️ Security Controls |
Minimal |
Minimal |
42 Transfer Hook controls |
| 🎖️ Investor Requirements |
None |
None |
Accredited investors only |
| 🔄 Conversion Rights |
None |
None |
Convertible to common stock |
| 🏛️ Institutional Ready |
No |
No |
Yes |
Why These Differences Matter
| OTCM Protocol Advantage |
Benefit |
| ⚖️ Category 1 Compliance |
Regulatory clarity enables institutional participation |
| 💎 Real Asset Backing |
Tokens represent actual equity, not speculation |
| 🏦 Qualified Custody |
Investor assets protected by SEC-registered custodian |
| 🛡️ Transfer Hook Controls |
Mathematical security prevents rugpulls, manipulation |
| 🎖️ Accredited Investors |
Sophisticated investors who understand risks |
| 🔄 Protective Conversion |
Token holders protected in adverse scenarios |
Target Market Comparison
💡 Our Unique Value: OTCM Protocol serves ~$50 billion in trapped shareholder value across companies that lost 15c2-11 eligibility, grey market securities, and illiquid OTC stocks. We're not competing with meme platforms — we're solving a real liquidity problem.
⚖️ LEGAL & COMPLIANCE
Q: How does OTCM Protocol comply with securities laws?
A: We operate under the SEC Category 1 (Issuer-Sponsored Tokenized Securities) framework established by the January 28, 2026 Joint Statement:
// SEC Category 1 Compliance Framework
class Category1Compliance {
// Regulatory Position 🏛️
position = {
// ST22 tokens ARE securities
classification: "Securities under federal securities laws",
framework: "SEC Category 1 (Issuer-Sponsored Tokenized Securities)",
offering: "Regulation D Rule 506(c) exempt offerings",
investors: "Accredited investors only (verified)"
};
// Seven Category 1 Requirements ✅
requirements = {
directIssuerAuthorization: "Board resolution required",
officialShareholderRegister: "Certificate of Designation filed",
regulatedCustody: "Empire Stock Transfer (SEC-registered)",
trueEquityBacking: "1:1 Preferred Series M shares",
clearOwnershipChain: "CUSIP + Golden Medallion Guarantee",
investorProtection: "42 Transfer Hook controls",
tokenStandardCompliance: "SPL Token-2022 with Transfer Hooks"
};
// Compliance Infrastructure 🛡️
infrastructure = {
kycAml: "Full Bank Secrecy Act compliance",
accreditation: "SEC Rule 501 verification required",
ofacScreening: "Real-time sanctions screening",
recordKeeping: "7-year transaction record retention",
transferHooks: "42 mathematically-enforced controls"
};
}
Why We Embrace Securities Classification
| Old Approach (Rejected) |
New Approach (Adopted) |
| ❌ "Howey Shield" avoidance |
✅ SEC Category 1 compliance |
| ❌ Claim tokens aren't securities |
✅ Acknowledge tokens ARE securities |
| ❌ Untested legal theories |
✅ Established SEC framework |
| ❌ Regulatory uncertainty |
✅ Regulatory clarity |
| ❌ Institutional exclusion |
✅ Institutional participation enabled |
Compliance Advantage
| Benefit |
Description |
| ⚖️ Regulatory Clarity |
Operating within clear SEC framework |
| 🏦 Institutional Access |
Category 1 compliance enables institutional participation |
| 🛡️ Investor Protection |
Full securities law protections apply |
| 📊 Market Credibility |
Securities market legitimacy |
| 🔒 Enforcement Protection |
Good faith compliance reduces enforcement risk |
Q: What is the "Howey Shield" and why don't you use it anymore?
A: The "Howey Shield" was our former approach (now deprecated) that attempted to structure tokens to avoid securities classification:
Why We Abandoned the Howey Shield
| Howey Shield Problem |
Category 1 Solution |
| ❌ Untested legal theory |
✅ SEC-endorsed framework |
| ❌ Subject to enforcement risk |
✅ Clear compliance pathway |
| ❌ Institutional investors excluded |
✅ Institutions can participate |
| ❌ "Meme token" perception |
✅ Securities market credibility |
| ❌ Regulatory arbitrage |
✅ Regulatory compliance |
| ❌ Limited legal standing |
✅ Established securities law |
Strategic Evolution
REGULATORY STRATEGY EVOLUTION
─────────────────────────────
2024-2025: "Howey Shield" Approach (DEPRECATED)
├── Goal: Avoid securities classification
├── Method: Structure tokens to "fail" Howey test
├── Risk: Untested, subject to SEC enforcement
└── Status: ABANDONED
2026+: SEC Category 1 Compliance (CURRENT)
├── Goal: Operate as compliant securities
├── Method: Satisfy all Category 1 requirements
├── Benefit: Regulatory clarity, institutional access
└── Status: ACTIVE
💡 Key Insight: The January 28, 2026 SEC Joint Statement provided a clear, compliant pathway that is superior to attempting to engineer around securities laws.
Q: What happens if regulations change?
A: OTCM Protocol is built with regulatory adaptability:
Regulatory Change Preparedness
| Scenario |
Response |
| 📜 Category 1 Formalized |
Already compliant; continue operations |
| ⚖️ New SEC Rulemaking |
Adapt Transfer Hooks and procedures |
| 🏛️ Congressional Legislation |
Framework designed for flexibility |
| 🌍 International Expansion |
Multi-jurisdiction compliance architecture |
Built-In Protections
| Protection |
Description |
| 🏦 Custody Independence |
Shares safe at Empire regardless of OTCM status |
| 🔄 Protective Conversion |
Token holders can convert to common stock |
| 📜 Legal Documentation |
Tripartite Agreement addresses regulatory changes |
| 💰 Compliance Reserves |
Reserves maintained for regulatory adaptation |
| 🔧 Upgradeable Controls |
Transfer Hooks can be updated for new requirements |
What Doesn't Change
| Permanent Feature |
Reason |
| 💎 1:1 Backing |
Fundamental to value proposition |
| 🏦 Qualified Custody |
Required for Category 1 |
| 🔒 Irrevocable Deposit |
Core investor protection |
| 🔄 Conversion Rights |
Protected by Certificate of Designation |
Q: Is OTCM Protocol registered as a securities exchange?
A: No. OTCM Protocol operates CEDEX (Compliant Exchange for Digital Securities) as a technology platform, not a registered securities exchange:
Regulatory Status
| Registration |
Status |
Notes |
| 📜 Securities Exchange |
Not registered |
Not operating as national securities exchange |
| 💼 Broker-Dealer |
Not registered |
Not effecting transactions for others |
| 📊 Investment Advisor |
Not registered |
Not providing investment advice |
| 🏦 Transfer Agent |
Not registered |
Empire Stock Transfer provides this service |
| 💵 Money Transmitter |
Analyzed per state |
Digital asset, not money transmission |
How CEDEX Operates
| Function |
Description |
Regulatory Basis |
| 💱 Trading Venue |
Provides technology for ST22 trading |
Technology platform |
| 🔐 Transfer Hooks |
Enforces compliance on transactions |
Smart contract infrastructure |
| 📊 Price Discovery |
Bonding curve and order matching |
Algorithmic matching |
| 🛡️ Compliance |
KYC/AML/accreditation verification |
Service provider |
Regulatory Considerations
| Consideration |
Analysis |
| ⚖️ ATS Registration |
Under analysis; may seek ATS registration |
| 🏛️ SEC Guidance |
Monitoring for additional guidance on tokenized securities trading |
| 📜 State Requirements |
Compliance with applicable state laws |
| 🌍 International |
Jurisdiction-specific analysis |
⚠️ Disclaimer: Regulatory classifications are subject to SEC interpretation. OTCM Protocol maintains dialogue with regulatory counsel and monitors developments.
🛡️ SECURITY & TECHNOLOGY
Q: What are Transfer Hooks and how do they protect investors?
A: Transfer Hooks are 42 mathematically-enforced security controls that execute on every ST22 transaction:
How Transfer Hooks Work
┌─────────────────────────────────────────────────────────────┐
│ TRANSFER HOOK EXECUTION │
├─────────────────────────────────────────────────────────────┤
│ │
│ User Initiates ST22 Transfer │
│ │ │
│ ▼ │
│ ┌─────────────────────────────────────────────────────┐ │
│ │ TRANSFER HOOK CHECKS │ │
│ │ ┌─────────────────────────────────────────────┐ │ │
│ │ │ 🏦 Custody Verification (6 controls) │ │ │
│ │ │ • 1:1 backing confirmed │ │ │
│ │ │ • Empire Stock Transfer status OK │ │ │
│ │ └─────────────────────────────────────────────┘ │ │
│ │ ┌─────────────────────────────────────────────┐ │ │
│ │ │ 🪪 Investor Verification (8 controls) │ │ │
│ │ │ • KYC status verified │ │ │
│ │ │ • Accredited investor status confirmed │ │ │
│ │ └─────────────────────────────────────────────┘ │ │
│ │ ┌─────────────────────────────────────────────┐ │ │
│ │ │ 🚫 OFAC Screening (5 controls) │ │ │
│ │ │ • Sender not sanctioned │ │ │
│ │ │ • Receiver not sanctioned │ │ │
│ │ └─────────────────────────────────────────────┘ │ │
│ │ ┌─────────────────────────────────────────────┐ │ │
│ │ │ 📊 Position Limits (5 controls) │ │ │
│ │ │ • Receiver won't exceed 4.99% │ │ │
│ │ └─────────────────────────────────────────────┘ │ │
│ │ ┌─────────────────────────────────────────────┐ │ │
│ │ │ 🔴 Circuit Breakers (4 controls) │ │ │
│ │ │ • No 30%+ price drop │ │ │
│ │ └─────────────────────────────────────────────┘ │ │
│ │ ┌─────────────────────────────────────────────┐ │ │
│ │ │ ⏰ Vesting (6 controls) │ │ │
│ │ │ • Tokens vested and transferable │ │ │
│ │ └─────────────────────────────────────────────┘ │ │
│ │ ┌─────────────────────────────────────────────┐ │ │
│ │ │ 🔄 Protective Conversion (4 controls) │ │ │
│ │ │ • No adverse trigger events │ │ │
│ │ └─────────────────────────────────────────────┘ │ │
│ │ ┌─────────────────────────────────────────────┐ │ │
│ │ │ 📋 Record Keeping (4 controls) │ │ │
│ │ │ • Audit trail updated │ │ │
│ │ └─────────────────────────────────────────────┘ │ │
│ └─────────────────────────────────────────────────────┘ │
│ │ │
│ All Pass? │
│ / \ │
│ Yes No │
│ │ │ │
│ ▼ ▼ │
│ ┌────────┐ ┌────────┐ │
│ │APPROVED│ │BLOCKED │ │
│ └────────┘ └────────┘ │
│ │
└─────────────────────────────────────────────────────────────┘
Why Transfer Hooks Matter
| Protection |
Without Transfer Hooks |
With Transfer Hooks |
| 🎖️ Accreditation |
Anyone can buy |
Only verified accredited investors |
| 🚫 Sanctions |
Sanctioned parties can transact |
Real-time OFAC blocking |
| 📊 Concentration |
Whales can accumulate |
4.99% wallet limit enforced |
| 🔴 Volatility |
No circuit breakers |
30% drop triggers halt |
| 🏦 Backing |
No verification |
1:1 verified every ~400ms |
| 🎭 Rugpull |
Possible |
Mathematically impossible |
Q: What technology stack does OTCM Protocol use?
A: Purpose-built for SEC Category 1 compliance:
Technology Stack
| Layer |
Technology |
Purpose |
| ⛓️ Blockchain |
Solana |
High throughput, low latency |
| 🪙 Token Standard |
SPL Token-2022 |
Transfer Hook support |
| 🔐 Security |
Transfer Hooks |
42 compliance controls |
| 🏦 Custody Oracle |
Custom |
Real-time Empire verification |
| 💱 Trading |
CEDEX |
Compliant order matching |
| 🌐 Frontend |
React/TypeScript |
User interface |
| 🔧 Smart Contracts |
Rust/Anchor |
On-chain logic |
Why Solana?
| Advantage |
Benefit for Category 1 |
| ⚡ Speed |
~400ms block times enable real-time verification |
| 💰 Low Fees |
Sub-cent transactions make compliance affordable |
| 🔐 Token-2022 |
Native Transfer Hook support for compliance |
| 🏗️ Infrastructure |
Mature ecosystem, institutional adoption |
| 📊 Throughput |
65,000+ TPS handles institutional volume |
A: Multiple channels for different needs:
Response Times
| Channel |
Expected Response |
| 📧 Email |
24-48 hours |
| 💬 Discord |
Same day |
| 🐦 Twitter/X |
24 hours |
| 🆘 Urgent Security |
4 hours |
| Field |
Value |
| 📄 Document Version |
3.0 |
| 📅 Last Updated |
January 2026 |
| 📍 Jurisdiction |
Wyoming, United States |
| 🏛️ Regulatory Framework |
SEC Category 1 (Issuer-Sponsored Tokenized Securities) |
| 🏢 Entity |
OTCM Protocol, Inc. (Wyoming Digital Asset Corporation) |
⚠️ Disclaimer: This FAQ provides general information about OTCM Protocol, Inc. and its services. It does not constitute legal, tax, or investment advice. ST22 Tokenized Securities are securities under federal securities laws and are available only to verified accredited investors. The OTCM Utility Token is a utility token with no asset backing and is not a security. Consult qualified professionals for specific guidance.
© 2026 OTCM Protocol, Inc. | All Rights Reserved
OTCM Protocol, Inc. is a Wyoming Digital Asset Corporation operating SEC Category 1 compliant tokenized securities infrastructure. ST22 Tokenized Securities are securities under federal securities laws pursuant to SEC Category 1 framework.
